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Chapter - 8 Capital Budgeting Decisions
Chapter Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Nature of Investment Decisions ,[object Object],[object Object],[object Object]
Features of Investment Decisions   ,[object Object],[object Object],[object Object]
Importance of Investment Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Investment Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investment Evaluation Criteria ,[object Object],[object Object],[object Object],[object Object]
Investment Decision Rule ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluation Criteria ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Net Present Value Method ,[object Object],[object Object],[object Object],[object Object]
Net Present Value Method ,[object Object]
Calculating Net Present Value   ,[object Object]
Acceptance Rule ,[object Object],[object Object],[object Object],[object Object]
Evaluation of the NPV Method ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Internal Rate of Return Method ,[object Object]
Calculation of IRR   ,[object Object],[object Object]
Calculation of IRR ,[object Object],[object Object],[object Object]
NPV Profile and IRR
Acceptance Rule ,[object Object],[object Object],[object Object],[object Object]
Evaluation of IRR Method ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Profitability Index ,[object Object]
Profitability Index ,[object Object]
Acceptance Rule ,[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluation of PI Method ,[object Object],[object Object],[object Object],[object Object]
Payback ,[object Object],[object Object],[object Object]
Payback ,[object Object],[object Object],[object Object],[object Object]
Acceptance Rule ,[object Object],[object Object]
Evaluation of Payback   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Payback Reciprocal and the Rate of Return ,[object Object],[object Object],[object Object]
Discounted Payback Period ,[object Object],[object Object]
Accounting Rate of Return Method ,[object Object],[object Object]
Acceptance Rule ,[object Object],[object Object]
Evaluation of ARR Method ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conventional and Non-conventional Cash Flows ,[object Object],[object Object]
NPV Versus IRR ,[object Object],[object Object]
NPV Versus IRR ,[object Object],[object Object]
Problem of Multiple IRRs ,[object Object]
Case of Ranking Mutually Exclusive Projects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Timing of Cash Flows   
Scale of Investment   
Project Life Span    
Reinvestment Assumption ,[object Object]
Modified Internal Rate of Return (MIRR) ,[object Object]
Varying Opportunity Cost of Capital   ,[object Object],[object Object]
NPV Versus PI ,[object Object]

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Ch 08